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The impact of "Family 500+" programme on household incomes, poverty and inequality

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  • Brzezinski, Michal
  • Najsztub, Mateusz

Abstract

We use the microsimulation approach and household budget survey data from 2015 to estimate the short-term impact of the “Family 500+” programme on household incomes, poverty and inequality. The results suggest that the programme will have the strongest impact on the incomes of households at the lower end of income distribution. Extreme consumption poverty in the whole population is reduced in the range from 35 to 37%, while child poverty in the range from 75 to 100%, depending on the choice of equivalence scale and assumptions about changes in household expenditures. The paper shows also that the programme will reduce the Gini index of income inequality in Poland by a few percentage points. The programme can lead to a lower risk of extreme poverty for households with children as compared to small households (e.g. single-person households). Analysis based on certain equivalence scales suggests that even before the implementation of the “Family 500+” programme extreme poverty among households with children was comparable or lower than among one-person or childless households. The progressive impact of “Family 500+” programme on income distribution in Poland may be reduced in the longer run if labour market activity of low income households will be affected negatively.

Suggested Citation

  • Brzezinski, Michal & Najsztub, Mateusz, 2021. "The impact of "Family 500+" programme on household incomes, poverty and inequality," SocArXiv vkr6h, Center for Open Science.
    • Handle: RePEc:osf:socarx:vkr6h
    DOI: 10.31219/osf.io/vkr6h
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    Cited by:

    1. Adam Szulc, 2022. "Reconstruction of the Social Cash Transfers System in Poland and Household Well-being: 2015 - 2018 Evidence," KAE Working Papers 2022-076, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Wędrowska Ewa & Muszyńska Joanna, 2021. "The Impact of Family and Child-Allowances on Income Inequality in Poland. Gini Decomposition by Income Sources," Folia Oeconomica Stetinensia, Sciendo, vol. 21(1), pages 144-160, June.
    3. Barbara Liberda & Katarzyna Sałach & Marek Pęczkowski, 2023. "The Effects of Child Benefit on Household Saving," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 447-460, June.
    4. Sadowski, Arkadiusz & Samoląg, Monika, 2020. "Functioning of the Family 500+ program on a selected example of rural areas," Rural Areas and Development, European Rural Development Network (ERDN), vol. 17.

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